Globalization and Labor Standards are interconnected for the increase in globalization in recent years has made people more aware of labor standards. Labor Standards and Globalization are both important in the modern world and increasingly, the governments of the nations are also becoming aware of there importance.
Globalization means the removal of trade barriers between nations and the integration of the nations' economies through trade in goods and services, corporate investments, and financial flow between nations. It has increased in recent years due to the fast pace progress that has been made in the area of technology especially in communications and transport. Globalization has helped the industrial sector to grow and this has increased the rate of employment. Also, many companies in developed countries are now setting up factories or outsourcing their work to developing countries due to globalization.
The various beneficial effects of Globalization on Labor Standards are that the developed countries saw to it that developing countries where they were either setting up their factories or outsourcing their work to were following the set Labor Standards. The USA threatened to stop the outsourcing of the production of apparel to Bangladesh when it became known that the developing country was employing child labor. And so Bangladesh had to ensure the USA government that it would follow the Labor Standards and not employ child labor in the future. Also in 1996, the International Labor Rights Fund which is an America based group launched campaign in order to put pressure on Adidas and Nike companies to stop outsourcing of the production of soccer balls to Pakistan on the ground that the companies in Pakistan were violating the Labor Standards by employing child labor. This shows that Globalization and Labor Standards are interconnected in the modern world.
Further the positive effects of Globalization on Labor Standards are that now many international bodies such as the International Labor Organization (ILO) and UNICEF see to it that companies do not abuse their workers and follow the Labor Standards that has been set up. The various negative effects of Globalization on Labor Standards are that although many new industries have been set up which in turn has increased the employment opportunities for the labors but most of the companies do not follow the Labor Standards that has been set by the International Labor Organization. As a result of this, laborers are being exploited by the companies, especially in developing countries. Many companies exploit labor by not giving the standard wage to their employees, making employees work over time without paying them extra wage, and by providing unsatisfactory living/working conditions to their employees.
The effects of Globalization on Labor Standards have been positive as well as negative. It is the duty of the governments of the nations to see to it that globalization has only a beneficial effect on Labor Standards.
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